Question

Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,400, Work in Process—Cutting $3,500, Work in Process—Assembly $11,500, and Finished Goods $32,200. During July, the following transactions occurred.

1.		Purchased $64,600 of raw materials on account.
2.		Incurred $60,200 of factory labor. (Credit Wages Payable.)
3.		Incurred $72,800 of manufacturing overhead; $41,600 was paid and the remainder is unpaid.
4.		Requisitioned materials for Cutting $17,200 and Assembly $9,600.
5.		Used factory labor for Cutting $33,100 and Assembly $27,100.
6.		Applied overhead at the rate of $20 per machine hour. Machine hours were Cutting 1,720 and Assembly 1,750.
7.		Transferred goods costing $69,000 from the Cutting Department to the Assembly Department.
8.		Transferred goods costing $136,600 from Assembly to Finished Goods.
9.		Sold goods costing $151,700 for $201,100 on account.

Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Journal entry

No	General Journal	Debit	Credit
1	Raw material	64600
	Account payable		64600
2	direct labor	60200
	Wages payable		60200
3	Manufacturing overhead	72800
	Cash		41600
	Account payable		31200
4	Work in process-Cutting	17200
	Work in process-Assembly	9600
	Raw material		26800
5	Work in process-Cutting	33100
	Work in process-Assembly	27100
	Direct Labor		60200
6	Work in process-Cutting (1720*20)	34400
	Work in process-Assembly (1750*20)	35000
	Manufacturing overhead		69400
7	Work in process-Assembly department	69000
	Work in process-Cutting department		69000
8	Finished goods	136600
	work in process-Assembly department		136600
9	Account receivable	201100
	Sales revenue		201100